At a regular meeting of the 2ederal PRI.!;SENT: Yr. Hamlin, presiding Mr. Williams. Mr. Delano. Mr. Willis, 0.ocretary.

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1 19( At a regular meeting of the 2ederal Reserve Board held in the office of the Board at 11:00 a. m., on Monday, Pebruary 14, PRI.!;SENT: Yr. Hamlin, presiding Mr. Williams Mr. Delano Mr. Warburg Ur. Harding Mr. Willis, 0.ocretary. On motion, upon the report of Mr. Harding, it was voted that in determining the population of Jioux City, Iowa, for the purpose of passing upon the applicvtion of the Bankers' Loan and Trust Compzmy for admission, the practice of the Comptroller in ascertaining population shall be followed. A report from Mr. Harding concurring in the action of 2edera1 Reserve Agent Ingle' in returning to the Bank of Dillon papers relating to its application for admission to the system, was approved. On motion applications for stock in

2 Federal reserve banks, duly recommended by Mr. Harding as chairman of the Committee on Member and State Banks, were approved as follows: DISTRICT No. 2. Lake Placid National Shares. Lake Placid, N.Y. 6 DISTRICT No. 3. Predericksburg,Pa. 1 DISTRICT No. 5. Carolina National Bank Bath County National Peoples National Bank Buchanan National Bank DISTRICT No. 6. Darlington, S. C. Asheboro, N. C. Hot Springs, Va. Strasburg Va. Buchanan, Va Citizens National Bank Washington, Ga. First & Peoples Nat'l Gallatin, Tenn DISTRICT No. 11. Hallettsville,Tex. 3 DISTRICT No. 12. Central National Bank Oakland, Gal. 60 Orange, Gal. 4 Mountain Home, Idaho 30 Junction City, Oregon 1

3 ".; United States Nat'l Paisley National Bank Northwestern Nati..Bank Fidelity National Bank McMinnville,Ore. 3 Paisley, Oregon 9 Portland, Oregon 15 Sedro Wooley, Wash 2 Spokane, Wash. 30 DISTRICT No. 9. Farmers National Bank Jackson National Bank National Bank of Dodge County Worthington Nat'l Bank National Bank of - Merchants National Bank DISTRICT No. 10. of Douglas County United States National Hutchinson, Minn. 1 International Palls, Minn. 1 Jackson, Minn. 3 Kasson, Minn. 4 Mapleton, Minn. 2 Mora, Minn. 1 Worthington, Minn. 3 Highmore, S. Dak. 6 Huron, 3. Dak. 2 South Shore, S.Dak.1 Volga, S. Dak Fargo, N. Dak. 15 Farmers & Merchants Nat. Jamestown, N.Dak. 1 First Nati(nal Bank bidgerwood, N.Dak. 3 United States Nat'l Page, N. Dak. Superior, Wis. 'Rice Lake, Wis. Marshfield, Wis Arvada, Colo. 1 Castle Rock, Colo. 1 Denver, Colo. 15 Eads, Colo. 6 Eaton, Colo. 2 Holly, Colo. 3 La Jara, Colo. 1 Roncos, Colo. 2

4 National Bank of - National Bank of - Olathe, Colo. Pueblo, Colo. Rocky Ford, Colo. Wray, Colo Wray, Colo. Cedar Vale Nat'l Bank Cedar Vale, Nans. 3 Council Grove Nat'l BankCouncil Grove,Kans.1 Army National Bank Fort Leavenworth, Kans. 1 fowler, Kans. 6 Farmers National Bank Hutchinson, Kans. 26 Home National Bank Langton, Kans. 1 Mankato National Bank Mankato, Kans. 3 Solomon National Bank Solomon, Kans. 3 Prairie View, Hans 1 St. John National Bank St. John, Kans. 3 Union Stock Yards Nat'l Wichita, Kans. 3 Lamar, Mo. 1 Lathrop, Mo. 3 National Bank of - North Kansas City, Mo. 3 Stewardsville, Mo. 3 Bayard, Nebr. 4 Carroll, Nebr. 3 Decatur, Nebr. 1 Farmers & Merchants Nat.Fairbury, Nebr. 1 Farmers & Merchants Nat.Fremont, Nebr. 8 Gering National Bank Gering, Nebr. 1 Hartington, Nebr. 2 Hemingford, Nebr. 3 Humphrey, Nebr. 1 Citizens National Bank Norfolk, Nebr. 3 Plainview, Nebr. 3 Scottsbluff Nat'l Bank Scottsbluff, Nebr. 2 Stanton, Nebr. 15 Wausa, Nebr. 8 Wausa, Nebr. 1 Winnebago, Nebr. 1 Wynot, Nebr. 1 Allen, Okla. 2

5 194, Alfalfa County Nat'l Farmers National Bank Citizens National Bank Citizens National Bank American National Bank Farmers National Bank 6ecurity National Bank Citizens National Bank Oklahoma National Bank Evanston National Bank Powell National Bank Bixby, Okla. 2 Braggs, Okla. 1 Cherokee, Okla. 1 Cushing, Okla. 1 Drumright, Okla. 3 Edmond, Okla. 1 Fairland, Okla. 1 Port Gibson, Okla.1 Geary, Okla. Harrah, Okla. Morris, Okla. 1 New Wilson, Okla. 1 Oklahoma City,Okla3 Oklahoma City, Okla. 3 Okla. City, Okla. 6 3al1isaw, Okla. 2 Skiatook, Okla. 2 Vian, Okla. 2 Wellston, Okla. 1 "laynoka, Okla. 1 Yale, Okla. Douglas, Wyo. 15 Evanston, Wyo. 3 Powell, Wyo. 1 Powell, Wyo. 1 6heridan, Wyo. 3 A draft of a resolution to be used by Federal reserve banks in declaring dividends, prepared by Counsel, was read to the Board, and on motion ordered circulated, the matter to lie on the table meanwhile. )/ Mr. Williams reported the result of a

6 4, conference between Mr. Harding and himself relative to the form for use in reporting the condition of national banks. He had accepted all Of the suggestions made by Mr. Harding and approved by the Board, with the exception of one relating to the number of depositors. The report was approved but held to await further report as to foreign letters of credit. On recommendation of Mr. Delano and Mr. Harding the action of the Federal Reserve Bank of Richmond in determining to buy bonds Primarily from member banks, was approved. In answer to letters from Governor McDougal of Chicago and Federal Reserve Agent Curtiss of Boston regarding the allotment of bonds, it was on motion voted: (1) That allotment of bonds shall be made in proportion to capital stock of reserve banks; () That there is bank's anticipating its chases; - both of these in accordance with past no objection to a allotment by purdecisions being rulings.

7 A - On motion it was voted that the Governor and Vice Governor, acting jointly, should prepare letters with reference to the purchase of bonds in answer to questions put by Federal reserve agents. The question of the establishment of an open market rate at Dallas was laid on the table for the present meting. Mr. Warburg reported to the Board the result of certain conversations he had had with Mr. Daniel G. Wing relative to the question of foreign branch banks, stating that Yr. Wing was confident he could secure the cooperation of enough other banks to form a strong institution for the creation of branches in other countries. Mr. Hamlin reported that Er* Rowe of the Advisory Council, had prepared a plan for clearance on a basis of immediate debit and credit, and would like to appear before the Board for the purpose of explaining it. It was

8 19"; Informally agreed that Mr. _owe be received at the proper time. On motion it was voted that the Jecrotary notify the Federal Reserve Bank of New York of the date of the forthcoming hearing regarding the position of certain Connecticut banks for transfer. Lire7/arburg presented to the Board the text of certain amendments to the Federal Reserve Act which he had prepared with a view to carrying into effect the recommendations of the Board in its forthcoming report. Mr. Hamlin, on bohalf of the Committee On Law, filed a written report regarding many pro- Posed amendments referred to that committee. On motion Mr. Harding was requested to endeavor to obtain for the Board's Counsel the use of the room now occupied by the Division of Insolvent Banks. On motion it was voted that an in-

9 quiry from Chief of Division Broderick be answered with the statement that bankers' acceptances running 90 days and endorsed by a member bank in any district, are eligible as security against Federal reserve notes. In answer to an inquiry from Chief of Division Broderick it was voted that where only one annual examination of State banks is made, a special examination shall be made by the Board, either independently or in cooperation with clearing house or other examiners, of such State banks as may be members of the system. It having been brought to the attention of the Board that some reserve banks were, granting loans on commodity paper for a six months period, Mr. Harding and the Secretary were directed to send to Such bank 6 a telegram stating the Board's opinion that such loans should be limited to 90 days.

10 / Mr. Harding reported to the Board a conversation held with Mr. E. F. Owinney of Kansas City concerning certain difficulties of administration in that institution. It was informally agreed that a committee should visit the Kansas City Bank as soon as reasonably practicable. Yr. Delano presented the following resolution, which was read and referred to the Committee on Laws WHEREAS, the necessity has long been recognized of a recodification of the National Banking Act; and WHEREAS, evidence has in the past been gathered from many sources regarding changes which were thought desirable; and WHEREAS, the Federal Reserve Board offers all necessary aid in collecting data and preparing such revision; now, therefore, BE IT RESOLVED, that Congress be requested to authorize the Banking and Currency Committees of the Senate and HOuse of Representatives to make a careful study of and report on the entire subject, taking under advisement the

11 various recommendations heretofore made by Secretaries of the Treasury, Comptrollers of the Currency and other investigators and officers and such recommendations as may be made by the Federal Reserve Board, and to present to Congress not later than December 10, 1916, a bill embodying a complete revision and recodification of the National Banking Act. A letter from Mr. Delano With reference to the question of the date from which the salary of the Comptroller of the Currency should begin to run, was ordered referred to the Governor of the Board for presentation in such form as he may see fit. Mr. Harding presented the draft of a proposed letter to Federal Reserve Agent Wellborn relating to the question of keeping a 100 reserve behind public deposits in Southern reserve banks - The letter was read and ordered to lie on the table for the present. Mr. Harding presented a draft of a memorandum proposing a plan whereby the ComPtroller of the Currency would refer to Counsel for the Board

12 questions relating to the Federal Reserve Act, the opinion of Counsel under such circumstances to have the same force as if rendered by Counsel to the Comptroller. The matter was referred to the Camnittee on Law. Yr. H mlin reported that the Georgia Bankers' Association had invited him to address it at Macon, Georgia, during the month of May. On motion he was authorized to attend the meet-, ing at the expense of the Board. The Committee on Staff having reported in favor of authorizing the Comptroller of the Currency to appoint two money counters for sixty days, the report was on motion approved. The Committee on Expenditures having reported relative to certain proposed changes In the fees payable to directors of the Federal Reserve Bank of Richmond, the matter was referred to Mr. Rarding and Mr. Williams with Dower to act.

13 communication from J. I. cotton concurring in the oninion of Counsel of the Board relative to the lack of power of the Board to prescribe the qualifications of members of the advisory Council, was read and noted. letter reported by :Ir. Thrburg in reply to an inquiry of Governor Faucher relative to the eligibility of dairy paper, was referred to the Governor and (jecretary of the Board with power to act. A letter from the Comptroller of the Currency with reference to the action of Governor Van Zandt of Dallas in approving a reduction in capital stock desired by a national bank, having been read, the 3ecretary of the Board was directed to call Governor Van Zandt's attention to the practice of the Board in the matter. Lr. Warburg having suggested the advisabilit: of reducing trade acceptance rates at reserve banks to 3;% it was agreed that each

14 ,member write an informal letter to the reserve bank to which he is specially detailed, making this suggestion. Certain correspondence with Yr. W. B. Yeary of Texas was presented to the Board and ordered filed. On motion it was voted that the Secretary be authorized to send to the printer the revised draft of the new regulations of the Board. On motion at 1:15 p. in. the Board adjourned to meet on Tuesday,, February 15,,at 11:00 a. m. APPROVED: Secretary. Chairman.